Bitcoin Defies Six-Month Trend, Surges Past Strategy's Ex-Dividend Date

For the first time in six months, Bitcoin has risen in the week following the ex-dividend date of Strategy's perpetual preferred stock, STRC. Currently trading at $79,000, this surge marks a significant turnaround, given that Bitcoin was valued at around $75,000 at the time of the ex-dividend date on April 15. This resilience in Bitcoin's value, despite the typical post-dividend adjustment in STRC, underscores the cryptocurrency's continued strength. Over the past few months, STRC has been a key funding instrument for Strategy's Bitcoin purchases, with the company utilizing the proceeds from its at-the-market (ATM) program to acquire more Bitcoin. Following the ex-dividend date, STRC typically declines by the value of the payout, as new buyers are no longer entitled to receive the dividend. However, the shares often recover within two weeks, returning to their $100 par value. With STRC currently trading at $99.47, Strategy, the largest publicly traded company holding Bitcoin, can utilize its ATM program to issue new shares and fund additional Bitcoin purchases. The company's shares have surged over 9% to $178, with Strategy likely tapping into its common stock ATM program to fund more Bitcoin acquisitions. A recent disclosure revealed the third-largest Bitcoin purchase of 34,164 BTC, with the price initially remaining within the $75,000 range. However, the current Bitcoin rally appears to be driven by positioning, with perpetual futures funding rates remaining negative, indicating that bearish sentiment still dominates. As prices rise, shorts are forced to close positions, creating a short squeeze that accelerates gains. Additionally, a persistent Coinbase premium, where Bitcoin trades slightly higher on the US exchange than on offshore platforms, points to steady spot demand, further supporting the cryptocurrency's surge.